It’s true that few of today’s plutocrats were born into the sort of abject poverty that can close off opportunity altogether— a strong early education is pretty much a precondition—but the bulk of their wealth is generally the fruit of hustle and intelligence (with, presumably, some luck thrown in). They are not aristocrats, by and large, but rather economic meritocrats, preoccupied not merely with consuming wealth but with creating it.

The Road to Davos

To grasp the difference between today’s plutocrats and the hereditary elite, who (to use John Stuart Mill’s memorable phrase) “grow rich in their sleep,” one need merely glance at the events that now fill high-end social calendars. The debutante balls and hunts and regattas of yesteryear may not be quite obsolete, but they are headed in that direction. The real community life of the 21st-century plutocracy occurs on the international conference circuit.

The best-known of these events is the World Economic Forum’s annual meeting in Davos, Switzerland, invitation to which marks an aspiring plutocrat’s arrival on the international scene. The Bilderberg Group, which meets annually at locations in Europe and North America, is more exclusive still—and more secretive—though it is more focused on geopolitics and less on global business and philanthropy. The Boao Forum for Asia, convened on China’s Hainan Island each spring, offers evidence of that nation’s growing economic importance and its understanding of the plutocratic culture. Bill Clinton is pushing hard to win his Clinton Global Initiative a regular place on the circuit. The TED conferences (the acronym stands for “Technology, Entertainment, Design”) are an important stop for the digerati; Herb Allen’s* Sun Valley gathering, for the media moguls; and the Aspen Institute’s Ideas Festival (co-sponsored by this magazine), for the more policy-minded.

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You might say that the American plutocracy is experiencing its John Galt moment. Libertarians (and run-of-the-mill high-school nerds) will recall that Galt is the plutocratic hero of Ayn Rand’s 1957 novel, Atlas Shrugged. Tired of being dragged down by the parasitic, envious, and less talented lower classes, Galt and his fellow capitalists revolted, retreating to “Galt’s Gulch,” a refuge in the Rocky Mountains. There, they passed their days in secluded natural splendor, while the rest of the world, bereft of their genius and hard work, collapsed. (G. K. Chesterton suggested a similar idea, though more gently, in his novel The Man Who Was Thursday: “The poor man really has a stake in the country. The rich man hasn’t; he can go away to New Guinea in a yacht.”)

This plutocratic fantasy is, of course, just that: no matter how smart and innovative and industrious the super-elite may be, they can’t exist without the wider community. Even setting aside the financial bailouts recently supplied by the governments of the world, the rich need the rest of us as workers, clients, and consumers. Yet, as a metaphor, Galt’s Gulch has an ominous ring at a time when the business elite view themselves increasingly as a global community, distinguished by their unique talents and above such parochial concerns as national identity, or devoting “their” taxes to paying down “our” budget deficit. They may not be isolating themselves geographically, as Rand fantasized. But they appear to be isolating themselves ideologically, which in the end may be of greater consequence.

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The lesson of history is that, in the long run, super-elites have two ways to survive: by suppressing dissent or by sharing their wealth. It is obvious which of these would be the better outcome for America, and the world. Let us hope the plutocrats aren’t already too isolated to recognize this. Because, in the end, there can never be a place like Galt’s Gulch.

Not to value and employ men of superior ability is the way to keep the people from rivalry among themselves;
not to prize articles which are difficult to procure is the way to keep them from becoming thieves;
not to show them what is likely to excite their desires is the way to keep their minds from disorder.

Therefore the sage, in the exercise of his government,
empties their minds, fills their bellies, weakens their ambitions,
and strengthens their bones.

If people lack knowledge and desire
Then they can not act;
If no action is taken
Harmony remains.

“For fifteen years I have diligently studied earthly life. True, I saw neither the earth nor the people, but in your books I drank fragrant wine, sang songs, hunted deer and wild boar in the forests, loved women . . . And beautiful women, like clouds ethereal, created by the magic of your poets’ genius, visited me by night and whispered me wonderful tales, which made my head drunken. In your books I climbed the summits of Elbruz and Mont Blanc and saw from thence how the sun rose in the morning, and in the evening overflowed the sky, the ocean and the mountain ridges with a purple gold. I saw from thence how above me lightnings glimmered cleaving the clouds ; I saw green forests, fields, rivers, lakes, cities ; I heard syrens singing, and the playing of the pipes of Pan ; I touched the wings of beautiful devils who came flying to me to speak of God : . . In your books I cast myself into bottomless abysses, worked miracles, burned cities to the ground, preached new religions, conquered whole countries . . .

“Your books have given me wisdom. All that the unresting thought of man has created in the ages is compressed into a small compass in my brain. I know that I am wiser than all of you.

“And I despise your books, despise all worldy blessings and wisdom. Everything is void, frail, visionary and delusive like a mirage. Though you be proud and wise and beautiful, yet will death wipe you from the face of the earth like the mice underground ; and your posterity, your history, and the immortality of your men of genius will be as frozen slag, burnt down together with the terrestrial globe.

“You are mad, and gone the wrong way. You take lie for truth and ugliness for beauty. You would marvel if by certain conditions there should suddenly grow on apple and orange trees, instead of fruit, frogs and lizards, and if roses should begin to breathe the odour of a sweating horse. So do I marvel at you, who have bartered heaven for earth. I do not want to understand you.